Financial Performance - Total revenues for the 13 weeks ended September 28, 2025, reached $370,750 thousand, a 11.2% increase from $333,368 thousand for the same period in 2024[18] - Membership revenues rose to $122,702 thousand for the 13 weeks ended September 28, 2025, compared to $107,394 thousand in the prior year, marking a growth of 14.3%[18] - For the 39 weeks ended September 28, 2025, the net income was $14,631,000, a significant improvement compared to a net loss of $71,345,000 for the same period in 2024[25] - The company reported a comprehensive loss of $4,300 thousand for the 13 weeks ended September 28, 2025, compared to a loss of $30,006 thousand for the same period in 2024[19] - The profit attributable to Soho House & Co Inc. for the 13 weeks ended September 28, 2025, was a loss of $18,708,000, compared to a profit of $175,000 for the same period in 2024[140] Assets and Liabilities - Total assets increased to $2,684,224 thousand as of September 28, 2025, up from $2,443,512 thousand as of December 29, 2024, representing a growth of approximately 9.8%[16] - Total liabilities increased to $3,033,128 thousand as of September 28, 2025, up from $2,772,970 thousand as of December 29, 2024, reflecting a rise of approximately 9.4%[17] - Total current assets increased to $405,225 thousand as of September 28, 2025, from $388,401 thousand as of December 29, 2024, an increase of approximately 4.3%[16] - The accumulated deficit decreased to $(1,525,155) thousand as of September 28, 2025, from $(1,539,500) thousand as of December 29, 2024, indicating an improvement in the company's financial position[17] - As of September 28, 2025, total long-term debt, net of current portion, is $704,032,000, an increase from $656,868,000 as of December 29, 2024, representing a growth of approximately 7.2%[108] Cash Flow and Operating Activities - The total cash provided by operating activities for the 39 weeks ended September 28, 2025, was $98,757,000, up from $62,794,000 in the prior year[25] - The Company reported net cash provided by operations of $99 million during the 39 weeks ended September 28, 2025[42] - Cash and cash equivalents decreased to $142,490 thousand as of September 28, 2025, down from $152,716 thousand as of December 29, 2024, a decline of about 6.5%[16] Expenses and Impairments - The company recognized $14 million in impairment losses on long-lived assets, primarily related to operating lease assets[169] - The company reported a loss on impairment of long-lived assets of $2,102,000 for the 39 weeks ended September 28, 2025[25] - Other expenses included $7 million related to third-party advisory expenses and $4 million for planned ERP systems implementation[165] Membership and Revenue Streams - As of September 28, 2025, SHCO had approximately 269,600 members, including about 213,800 Soho House Members[209] - The global waitlist for SHCO membership stands at over 111,000 applicants as of September 28, 2025[212] - Membership Revenues consist of annual membership fees and one-time initial registration fees, while In-House Revenues include food and beverage, accommodation, and spa products[214] - In-house revenues for the 39 weeks ended September 28, 2025, totaled $391.879 million, demonstrating robust growth in this segment[169] Strategic Initiatives and Future Outlook - The Company is implementing a new modernized finance ERP system to enhance internal controls and support strategic growth initiatives[35] - The company entered into definitive agreements for a merger on August 15, 2025, which is subject to shareholder approval[29] - The Company has assessed the impact of BEPS Pillar Two Minimum Tax legislation and concluded it will not materially affect the effective tax rate or tax payments for this period[158] Tax and Regulatory Matters - The effective tax rate for the 13 weeks ended September 28, 2025, was 39.0%, a significant decrease from 96.2% for the same period in 2024[155] - The gross unrecognized tax benefits increased by $4 million in the 39 weeks ended September 28, 2025[157] - The Company recorded valuation allowances against deferred tax assets primarily in the U.K., U.S., and Hong Kong, with potential changes in the next twelve months[156] Shareholder and Equity Matters - The Company has 3,601,931 shares available for future awards under the 2021 Equity and Incentive Plan as of September 28, 2025[126] - The Company granted 306,146 new RSUs under the 2021 Plan during the 39 weeks ended September 28, 2025[126] - Total share-based compensation expense for the 13 weeks ended September 28, 2025, was $3,505,000, compared to $3,513,000 for the same period in 2024, while for the 39 weeks, it was $8,021,000 versus $15,150,000[129]

Core Insights - Soho House & Co reported a quarterly loss of $0.1 per share, missing the Zacks Consensus Estimate of $0.02, compared to break-even earnings per share a year ago [1] - The company posted revenues of $370.75 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.50% and showing an increase from $333.37 million year-over-year [3] - The stock has gained approximately 19.3% since the beginning of the year, outperforming the S&P 500's gain of 14.3% [4] Earnings Performance - The quarterly report represents an earnings surprise of -600.00%, with the company previously expected to post a loss of $0.08 per share but instead reporting a loss of $0.1 [2] - Over the last four quarters, Soho House has surpassed consensus EPS estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $352.8 million, and for the current fiscal year, it is $0.17 on revenues of $1.32 billion [8] - The estimate revisions trend for Soho House was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Hotels and Motels industry, to which Soho House belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]

Financial Performance - Total revenues reached $370.8 million, reflecting an 11.2% year-over-year growth[4] - Membership revenues increased to $122.7 million, a 14.3% year-over-year rise[4] - Adjusted EBITDA was $53.8 million, up from $48.3 million in Q3 2024, with an Adjusted EBITDA margin of 15%[4][8] - Net loss attributable to Soho House & Co Inc. was $18.7 million, or $0.10 loss per share, including $14.0 million in non-cash foreign exchange losses[4] - For the 13 weeks ended September 28, 2025, the company reported a net loss of $17,010,000 compared to a net income of $718,000 for the same period in 2024, representing a significant decline[22] - Total revenues increased to $370,750,000 for the 13 weeks ended September 28, 2025, up from $333,368,000 in the prior year, marking a growth of 11%[27] - Adjusted EBITDA for the 13 weeks ended September 28, 2025, was $53,774,000, an increase of 11% from $48,281,000 in the same period of 2024[22] - Operating income for the 13 weeks ended September 28, 2025, was a loss of $6,004,000, compared to a profit of $37,884,000 in the prior year, indicating a substantial decrease[23] Membership and Growth - Total members grew by 0.8% year-over-year to 269,606, with Soho House members increasing by 2.8% to 213,830[11] - Membership revenues rose to $122,702,000 for the 13 weeks ended September 28, 2025, compared to $107,394,000 in 2024, reflecting a growth of 14%[27] - House Membership Revenues are primarily derived from annual membership fees and one-time legacy registration fees, with the latter no longer applicable to new members since April 4, 2022[33] - Membership revenues are influenced by the number of members, membership mix, and pricing, with higher prices generally in North America compared to the UK and Europe[43] Revenue Streams - In-House revenues were $126.1 million, a 4.5% increase year-over-year, with RevPAR up 2% on a like-for-like basis[4][8] - In-House revenues increased to $126,088,000 for the 13 weeks ended September 28, 2025, up from $120,658,000 in the previous year, showing a growth of 4%[27] - Other revenues rose to $122.0 million, marking a 15.8% year-over-year growth driven by Scorpios and Soho Home[4] - In-House revenues include all revenues generated within the Houses, such as food and beverage, accommodation, and spa services[34] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $148 million[10] - Cash flows from operating activities for the 39 weeks ended September 28, 2025, were $98,757,000, compared to $62,794,000 in the prior year, indicating improved cash generation[29] - The company ended the period with cash, cash equivalents, and restricted cash totaling $148,254,000, down from $156,318,000 at the beginning of the period[29] - Cash and cash equivalents as of September 28, 2025, totaled $142,490,000, a slight decrease from $142,816,000 as of September 29, 2024[30] - The company reported an increase in accounts receivable, net, to $68,317,000 as of September 28, 2025, down from $78,890,000 as of December 29, 2024[31] - Cash paid for income taxes increased to $7,268,000 for the 39 weeks ended September 28, 2025, compared to $3,768,000 for the same period in 2024[30] - Total assets increased to $2,684,224,000 as of September 28, 2025, compared to $2,443,512,000 as of December 29, 2024, reflecting a growth of approximately 9.8%[31] - Total liabilities rose to $3,033,128,000 as of September 28, 2025, up from $2,772,970,000 as of December 29, 2024, indicating an increase of about 9.4%[32] - The total current liabilities increased to $564,630,000 as of September 28, 2025, from $474,162,000 as of December 29, 2024, reflecting a rise of approximately 19.1%[32] Expansion and Operations - The company opened Soho Farmhouse Ibiza and enhanced Soho Farmhouse in the UK with new fitness amenities[3] - The company plans to further expand Soho Health Clubs in response to strong demand for health and wellness offerings[3] - As of September 28, 2025, Soho House & Co operates 46 Soho Houses and 8 Soho Works globally[50] - The company has expanded its portfolio to include Scorpios Beach Clubs in Mykonos and Bodrum, as well as The Ned locations in London, New York, and Doha[50] - Soho House & Co is the only company that has scaled a private membership network with a global presence since its inception in 1995[50] - The company offers a diverse membership platform that connects members through physical and digital spaces[50] - Soho Home, the company's interiors and lifestyle retail brand, is part of its broader offerings[50]

Core Viewpoint - Soho House & Co Inc. is currently under investigation for potential breaches of fiduciary duty, which may have significant implications for the company's governance and investor confidence [1] Company Summary - The investigation is being conducted by the DJS Law Group, indicating potential legal challenges ahead for Soho House & Co Inc. [1] - The nature of the alleged breaches suggests concerns regarding the management's responsibilities towards shareholders and overall corporate governance [1]

Core Insights - The Ademi Firm is investigating SoHo House for potential breaches of fiduciary duty and other legal violations related to its going-private transaction [1] - Shareholders of SoHo House will receive $9.00 per share in cash, indicating a total enterprise value of approximately $2.7 billion [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Soho House & Co (SHCO) - SHCO currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3][4]. - The company operates members-only luxury hotels and clubs under the Soho House brand, positioning it as a promising momentum pick [4]. Price Performance - Over the past week, SHCO shares increased by 0.23%, while the Zacks Hotels and Motels industry declined by 1.01% [6]. - In a longer timeframe, SHCO's shares have risen by 28.63% over the past quarter and 64.8% over the last year, significantly outperforming the S&P 500, which increased by 9.68% and 20% respectively [7]. Trading Volume - SHCO's average 20-day trading volume is 2,437,823 shares, indicating a bullish sign as rising stocks with above-average volume are generally viewed positively [8]. Earnings Outlook - In the past two months, one earnings estimate for SHCO has increased, while none have decreased, raising the consensus estimate from -$0.10 to $0.17 [10]. - For the next fiscal year, one estimate has moved upwards with no downward revisions, suggesting a positive earnings outlook [10]. Conclusion - Given the strong performance metrics and positive earnings revisions, SHCO is positioned as a strong buy with a Momentum Score of A, making it a noteworthy investment opportunity [12].

Group 1 - Carnival (CCL) is a notable stock in the Consumer Discretionary sector, currently outperforming the sector with a year-to-date return of 25.8% compared to the sector average of 10.9% [4] - The Zacks Rank for Carnival is 2 (Buy), indicating a positive earnings outlook and improving analyst sentiment, with a 7.2% increase in the full-year earnings estimate over the past three months [3][4] - Carnival is part of the Leisure and Recreation Services industry, which has gained about 10.7% this year, further highlighting its strong performance relative to its industry peers [6] Group 2 - Soho House & Co (SHCO) has also shown strong performance in the Consumer Discretionary sector, with a year-to-date return of 18.8% and a Zacks Rank of 1 (Strong Buy) [5] - The consensus estimate for Soho House & Co's current year EPS has increased significantly by 278.9% over the past three months, indicating a very positive outlook [5] - Soho House & Co belongs to the Hotels and Motels industry, which has experienced a decline of -12.9% this year, contrasting with its own strong performance [6]

Core Viewpoint - Kaskela Law LLC is investigating the proposed buyout of Soho House & Co Inc. to assess the fairness of the transaction for shareholders, particularly due to potential conflicts of interest involved in the deal [1][3]. Summary by Sections Buyout Details - On August 18, 2025, Soho House announced an agreement to be acquired by an investment group led by MCR and its Executive Chairman at a price of $9.00 per share in cash [2]. Conflicts of Interest - The investigation has revealed significant conflicts of interest, as Soho House's Executive Chairman Ron Burkle will retain his equity stake in the new private company, while minority shareholders will be cashed out at $9.00 per share, missing out on any future gains [3]. Shareholder Actions - Shareholders of Soho House are encouraged to contact Kaskela Law LLC for information regarding their legal rights and options related to the investigation [4].

Group 1 - Halper Sadeh LLC is investigating potential violations of federal securities laws and breaches of fiduciary duties related to the sale of Soho House & Co Inc. to affiliates of MCR for $9.00 per share in cash [1] - The firm is also looking into the sale of WideOpenWest, Inc. to affiliates of DigitalBridge Investments, LLC and Crestview Partners for $5.20 per share [2] - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief on behalf of shareholders, operating on a contingent fee basis [3] Group 2 - Shareholders are encouraged to contact Halper Sadeh LLC free of charge to discuss their legal rights and options [4] - The firm represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions on behalf of defrauded investors [4]

Group 1 - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, has successfully recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - The firm is currently investigating Soho House & Co Inc. (NYSE: SHCO) regarding its merger with affiliates of MCR Hotels, where Workhorse shareholders are set to receive $9.00 per share in cash [1] - The article raises the question of whether the proposed transaction is a fair deal for shareholders [1] Group 2 - Monteverde & Associates PC operates from the Empire State Building in New York City and is a national class action securities firm with a successful track record in various courts, including the U.S. Supreme Court [2] - The firm emphasizes that not all law firms are equal and encourages potential clients to inquire about their past recoveries and case successes [2][4]